Financial Relief: Unlocking Free Government Money

With all the chatter about financial independence, where we’re all about helping you make savvy money moves, we’ve got a juicy secret to share that could seriously boost your financial game: free government cash. Yes, you read that right. There are federal and state grants and loans that can help with everyday expenses like bills, groceries, college, and even that down payment for your dream home. Let’s take a closer look at this side of financial aid.

What Is It About?

While not exactly ‘free money,’ these taxpayer-funded programs connect individuals and families with resources to help pay for various expenses. Each program has its own set of qualifications, many of which are income-based. Having that information ready can make the application process go smoothly.

Need help covering the costs of energy, phone service, and groceries? There are programs designed specifically to help you with these expenses.

Assistance for Basic Needs

The Low Income Home Energy Assistance Program helps low-income households cover heating and cooling costs. Grants are issued via states, which receive funding from the Department of Health and Human Services. Each state sets its own eligibility requirements, including income levels.

The Lifeline program offers discounted phone or internet service. You must meet certain eligibility requirements to qualify for this program.

Nutritional Assistance and Child Care Support

The Supplemental Nutrition Assistance Program, or SNAP, is for families who meet income requirements in their state. If approved, families receive benefits each month on an Electronic Benefits Transfer, or EBT, card, which works like a debit card that can be used in authorized stores.

Child care is a major expense for many families. The Child Care and Development Fund can help ease the burden for low-income families. Administered by the U.S. Department of Health and Human Services, the fund gives states, territories, and tribes money to distribute to families to help pay for child care. Grants are income-based and typically cover care for children under 13.

Unclaimed Money and Homeownership Assistance

About 1 in 10 Americans have unclaimed money, according to the National Association of Unclaimed Property Administrators. These unclaimed funds are turned over to the state when the owner can’t be located. Visit unclaimed.org, a site affiliated with the National Association of State Treasurers, to find out if you have money waiting to be claimed.

If you want to buy a home but can’t afford a down payment, state-based down payment assistance programs can help. These grants and loans help you cover the upfront costs of purchasing a home.

Health Insurance and College Grants

Individuals and families who buy medical coverage through the government’s health insurance marketplace (HealthCare.gov) may qualify for a credit toward their insurance premiums. The premium tax credit can be paid directly to your insurance provider, lowering your monthly payments.

College grants, like the federal Pell Grant, can make it easier to pay for college. Students who are eligible for the Pell Grant could get up to $7,395 for the 2023-24 award year. The exact amount awarded is based on factors that include financial need, the cost of attendance, and enrollment status.

Protecting Your Finances

While there are ways to get financial assistance from the government, there are also grant scams that claim to give you free money from the government in hopes of stealing from you. Don’t be fooled. The government rarely reaches out to people with offers of free money, especially for starting a new business or covering personal expenses, and when it does, it’s never via social media. The goal of state and federal programs is to get people and families in need on their feet and on their way to financial independence.

As you explore the myriad opportunities for financial aid, remember that while scams may attempt to obscure the path to prosperity, genuine government support is an invaluable resource. By remaining vigilant and making informed choices, you can unlock the benefits of these programs, securing a brighter financial future and embarking on your journey toward financial independence.